| Access
Share Offer Opens Early
SYDNEY, Aus. (April 3, 2000) --
Access Gaming Systems Limited, leading supplier of internet gambling systems to
government regulated gaming operators throughout the world, opens its $45
million share offer on Monday, April 3, a week earlier than scheduled.
The
float is one of the first to go public under the new CLERP legislation
requiring a public exposure of the prospectus prior to the issue opening.
Michael Neal, Vice President of Investment Banking at Deutsche Bank, the Lead
Manager of the issue, said there had been considerable interest from retail
investors during the exposure period.
"The company is well placed as a
systems and software development company. It has the leading position worldwide
in supplying the rapidly emerging Internet gaming marketplace, and much of its
future revenue is expected to be generated through participating in its
clients’ net revenues," Mr Neal said.
The company, with a workforce of
over 150, supplies major casinos and lottery groups in regulated jurisdictions
in Australia and Europe with a complete Internet gaming system that operators
can easily customise.
Australian Clients who have online sites or are
building Internet gaming sites are:
European Clients include:
Access’ current clients have a combined
turnover of in excess of $20 billion through their existing land based
distribution channels. Access expects to sign up additional clients in the near
future.
Its strategy is to only supply those operating from fully regulated
jurisdictions. "We believe that as the established, fully regulated casinos and
lotteries go online, gamblers will move to these more trusted brands, and the
gaming sites operating from largely unregulated jurisdictions are likely to
suffer," Managing Director, Mr Stephen Mulcahy, says.
"As our system offers
great versatility for operators to customise, is highly secure and the first
and only one to be government certified in a fully regulated jurisdiction,
Access has become the largest supplier to the regulated market.
"Our share
of client net revenues has averaged around 9% but recent agreements have
confirmed an upward trend in this share. Our revenue sharing offers investors a
way to share in the emerging market of Internet gaming, which Frost &
Sullivan estimates will grow at a component annual growth rate of more than 40%
a year to an estimated $17.2 billion by 2005," he says.
Access’
revenue in the current financial year is forecast at $11.3 million, with few
clients now operational. It expects most present clients to be contributing to
revenue in 2001.
"We are one of the few businesses with e-commerce
exposure that does not need to spend large amounts on marketing a site or brand
to consumers. Our focus is on research and development to create exciting new
interactive games and encourage the use of our system as the industry
standard," Mr Mulcahy says.
Issue details:
- Number of shares offered - 22.5 million;
- Bookbuild offer with retail price capped at $2 a
share;
- Indicative institutional price range - $1.50 to $2
a share;
- Market capitalisation at retail cap - $200
million;
- Retail offer opens - April 3;
- Retail offer scheduled to close - May 3;
- Institutional offer closes - May 5;
- Final Price and basis of share allocation announced
- May 5;
- Expected start of trading on ASX - May 12
Lead Manager for the float is Deutsche Bank. For
copies of the prospectus or enquiries contact 1800 816 550. Prospectus is also
available at http://www.access.com.au
CONTACTS: For further information
please contact Jim McConway, Chief Financial Officer, Access Gaming Systems
Limited, (02) 9957 1036, or Michael Neal, Vice President Investment Banking,
Deutsche Bank (02) 9258 1036
SOURCE: FCR (Financial & Corporate
Relations); phone Brian Mahoney (02) 9235 1666 wk, or (02) 9498 4498
ah
Lotteries Industry
Specialist Appointed Chairman of Access Gaming
Systems
SYDNEY, Australia (March 22, 2000) – Access
Gaming Systems Limited, a supplier of a Internet gaming systems to regulated
casinos and lotteries in Australia and Europe, has appointed Mr Ernie
O’Keefe as Chairman of the company’s Board of Directors.
Mr
O’Keefe is a consultant to lotteries globally and General Manager of
Interplay Multimedia, but is also widely known in the industry throughout the
world as editor of the international Internet lottery magazine, Lottery
Insider.
He has an extensive knowledge of the industry, with expertise
gained in a number of senior positions in
NSW Lotteries from
early 1988 to 1996, where he was Lotteries Manager, Product Manager, New
Business Development Manager and Group Product Manager. Mr O’Keefe served
on the Board of NSW Lotteries and has a network of contacts in the lotteries
industry internationally.
He has in-depth knowledge of the diversification
of product ranges and the development of new technologies in the lottery and
Internet gaming industries.
Released by: Access Gaming Systems
Leader in On-Line Gaming Systems
Announces $45 Million Share Offer
SYDNEY, Australia
(March 24, 2000) -- Access Gaming Systems Limited, a world leader in supplying
the rapidly emerging industry of regulated Internet gaming, intends to raise
approximately$45 million with an initial public offering of shares, announced
today.
Issue details:
- Number of shares offered -- 22.5 million;
- Price -- Bookbuild offer with a capped retail price
of $2 per share;
- Indicative institutional price range -- $1.50 to $2
per share;
- Market capitalisation at retail cap -- $200
million;
- Retail offer opens -- April 10;
- Retail offer closes -- May 3;
- Institutional offer closes -- May 5;
- Final Price and basis of share allocation announced
-- May 5;
- Expected start of trading on ASX -- May 12.
The company, with a workforce of over 150, supplies
major casinos and lottery groups in regulated jurisdictions in Australia and
Europe with a total Internet gaming system which the operators can easily
customise.
Critical to Access’ strategy is that it only supplies its
system to lotteries and casinos who operate from fully regulated jurisdictions.
Clients are Lasseters,
Tattersall’s, Federal Hotels,
Golden
Casket and GOCORP in Australia as well as
Austrian Lotteries,
Westdeutsche Lotterie, Holland Casinos and RAL in Europe.
Access’ current clients have a combined turnover of in excess of $20
billion through their existing land based distribution channels.
"Our base
of quality clients offers investors a unique opportunity to gain a diversified
exposure to the rapidly expanding Internet gaming industry. Frost &
Sullivan estimates the industry will grow from $639 million in 1998 to $17.2
billion 2003 representing a compound rate of growth of more than 40% per
annum," Managing Director, Stephen Mulcahy comments, "The industry is still in
its infancy and Access expects to sign up additional clients in the near
future."
Fundamental to the company’s business is that Access
typically receives a share of the net revenues derived by its clients.
Historically, this share of net revenues has averaged over 9%. It is expected
that future revenue participation rates will be higher. Recent agreements have
confirmed this upward trend.
"E-commerce companies typically spend up to
35% of their revenue in generating brand awareness. As Access is a systems and
software developer, it gains e-commerce exposure through its clients without
expending the significant costs associated with building brand awareness,"
Stephen Mulcahy says.
Access leads the industry globally by having the
first Internet gaming system in the world to be government certified. This is
essential in an industry where probity and credibility are critical.
Access
has also taken the approach of making its Internet gaming system an open
platform, enabling its clients and independent games developers to create new
games based on its platform. To achieve this, it provides its Game Development
Kit (GDK) free of charge.
"New and entertaining games are critical to the
success of any Internet gaming operator. Funds raised will go toward further
development of Access’ Internet gaming system and to the development of
further exciting games to be used on the Access’ clients sites."
Funds
will also be used to fund capital expenditure, expenses of the offer and
working capital requirements.
Access is forecasting revenues of $11.3
million in the year to June 30, 2000 with a net loss of $7.5 million. Directors
say that while the majority of Access’ clients will not be operational
until the latter part of year ending 30 June 2000, these clients should
contribute strongly to Access’ revenues in 2001 and beyond.
Mr Mulcahy
said that under the recently introduced CLERP regulations there will be up to
two weeks between today’s launch and when the prospectus and applications
forms will be available. During the intervening exposure period, the prospectus
can be viewed on Access’ website:
http://www.access.com.au
from Monday March 27.
SOURCE:
Access Gaming
Systems.
CONTACT: For further information or comment today or Sunday
please phone Brian Mahoney (02) 9498 4498 a.h. , or 0413 437 627 m., to arrange
interviews.
During the week: Access Gaming Systems, Managing Director,
Stephen Mulcahy, on (02) 9957 1036 or Deutsche Bank, Vice President Investment
Banking, Michael Neal on (02) 9258 1036 Released through FCR (Financial &
Corporate Relations) phone (02) 9235 1666. |
